Inflation, Operation Research

 Inflation

Inflation is a general increase in the price of goods and services. The inflation rate, as measured by the Consumer Price Index (CPI), was 9.9% in 20x2-x3 and is expected to be 8% in 20x3-x4. This does not mean that prices will be lower in 1993-94. It merely means that the general increase in prices will be lower. An example will clarify the point.

The prices of certain items are included in calculating the CPI. If a given quantity of these items cost Rs.10,000 in the beginning of 20x2-x3, then at the end of 20x2-x3 they would cost Rs.10,990 which is 9.9% more. Further at the end of 20x3-x4 they will be expected to cost Rs.11,869 which is 8% more than the cost at the beginning of the year. Clearly the prices have not fallen, only the rate of increase has slowed down.

Figure 1: Inflation as Reflected by the Cost of Items Worth Rs.10,000
on 1st April 1992

1831_inflation.png

         1st April 20x2  1st April 20x3 1st April 20x4

Posted Date: 9/13/2012 9:18:16 AM | Location : United States







Related Discussions:- Inflation, Assignment Help, Ask Question on Inflation, Get Answer, Expert's Help, Inflation Discussions

Write discussion on Inflation
Your posts are moderated
Related Questions
Solve the following Linear Programming Problem using Simplex method. Maximize Z= 3x1 + 2X2 Subject to the constraints: X1+ X2 = 4 X1 - X2 = 2 X1, X2 = 0

The Upjohn Company, based in Kalamazoo, Michigan, manufactures and markets pharmaceuticals and health-related products. With more than 19,000 employees and distribution in over 30

Simple Random Sampling  This  is  simplest  and most  popular  technique  of sampling. In it each  unit  of the  population has equal  chance  of being  included in the samp

A paper mill produces two grades of paper viz., X and Y. Because of raw material restrictions, it cannot produce more than 400 tons of grade X paper and 300 tons of grade Y paper i

Operations research is used by manager in making business decisions. What are five each of its merit and demerit that the users need to be aware of?

This assignment requires you to evaluate a product from the view point of quality, both quality of design (as perceived by the user) and quality of conformance. To ensure that we a

A paper mill produces two grades of paper viz., X and Y. Because of raw material restrictions, it cannot produce more than 400 tons of grade X paper and 300 tons of grade Y paper i

A paper mill produces two grades of paper viz., X and Y. Because of raw material restrictions, it cannot produce more than 400 tons of grade X paper and 300 tons of

Information on Research Done Information on Doctoral research work already done  is available from  the followings  sources: a. Bibliography of Doctoral  Dissertations Acce

Solve the following Linear Programming Problem using Simple method. Maximize Z= 3x1 + 2X2 Subject to the constraints: X1+ X2 = 4 X1 - X2 = 2 X1, X2 = 0